(18 marks) Consider the following cash flow line for a debt instrument, B/P: Face value Coupons $1,000 t-l 0 1-2 1-0 $10,000 $1,000 0 1-3 1-4 The discount rate is 10% per year, and compounding is done once a year. Required: a. (6 marks) Prepare journal entries to record the issue of the bonds payable. b. (2 marks) What interest expense, if any, is reported on year 2 (t-2) I/S? (3 marks) Suppose CFO from the CFS for year 4 is $7,000. Calculate the adjusted CFO for year 4 if the tax rate is 30%. d. (7 marks) Suppose at the end of year 2, the debt instrument is redeemed for $8,990. Calculate the gain/loss on redemption and prepare journal entries to record the redemption